Released: April 21, 2020

Small businesses sue Wells Fargo, JPMorgan over failure to get loans

Source: David McLaughlin, Mark Niquette and Olivia Rockeman - Bloomberg

Wells Fargo & Co., Bank of America Corp., JPMorgan Chase & Co. and US Bancorp were sued by small businesses that accused the lenders of prioritizing large loans distributed as part of the virus rescue package, shutting out the smallest firms that sought money.

The four banks processed applications for the largest loan amounts because they generated the highest fees, rather than processing them on a first-come-first-served basis as the government promised, according to lawsuits filed Sunday in federal court in Los Angeles.

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